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Deputy Prime Minister Le Minh Khai answers questions. Photo: Quochoi.vn

The impact must be assessed very seriously

At the question-and-answer session of Deputy Prime Minister Le Minh Khai on the morning of June 8, 2023, delegate Nguyen Danh Tu (Kien Giang delegation) said that the global minimum tax issue poses many challenges for countries.

The requirement is to respond effectively to negative impacts, ensuring the competitiveness and attractiveness of our country's investment environment. Therefore, the delegate asked the Deputy Prime Minister to give the direction of action and solutions to this problem.

Answering delegates, Deputy Prime Minister Le Minh Khai stated that the global minimum tax is one of the current topical issues. In June 2021, the G7 group reached a global minimum tax agreement, fixing a corporate income tax rate of about 15%, if the payment is made in the host country, there is a difference in the investment country, and it must be handled at 15%.

By July 2021, the G20 group also agreed on a crucial solution for the global minimum tax and tax sharing among countries, especially with technology platforms. By the end of 2022, the Organization for Economic Cooperation and Development (OECD) has 138 countries agreeing on the framework.

“In principle, we agree that international cooperation is also required to integrate, but it is not compulsory. However, countries have now joined and have internalized the law, which is expected in 2023 and will come into force in 2024”, said the Deputy Prime Minister.

Therefore, according to the Deputy Prime Minister, the Central Committee, the National Assembly, the Government, the Prime Minister and especially the President of the National Assembly are also very interested. There are many forums and directions on this issue. The Prime Minister has established a working group to study and evaluate the impact. The working group has just reported, the Government Standing Committee has met, the Ministry of Planning and Investment has assessed the impact, and the Government will submit to the National Assembly the earliest solutions to ensure the legal rights and obligations of the investors and national interests.

The Deputy Prime Minister also emphasized that Vietnam has deeply integrated, so it is very important to ensure the legal rights and obligations of investors and the interests of the country, but it is still difficult because of many external influences.

Along with this issue, in response to a question from delegate Ha Sy Dong (Quang Tri delegation) regarding FDI attraction in terms of global minimum tax, the Deputy Prime Minister said that the impact must be assessed very seriously, practically and scientifically. When implementing a global minimum tax, it will affect investment attraction commitments, especially taxes, so it must be handled very carefully and ensure all the influence of the relevant authorities.

Regarding the work of attracting investment capital, the Deputy Prime Minister also acknowledged that it is still difficult, especially in the context of the volatile global and domestic economic conditions. Therefore, in the future, it is necessary to pay attention and have solutions suitable to the situation to attract investment with the highest efficiency.

Members of the National Assembly. Photo: Quochoi.vn

Why is the equitization progress slow?

Also at the session, the National Assembly deputies asked the Deputy Prime Minister to clarify the progress of equitization and divestment of state capital in enterprises that have not yet achieved the set plan.

Responding to delegates, the Deputy Prime Minister said that the equitization work currently does not meet the requirements as well as the plan set out, including in terms of the number of state-owned enterprises, capital, and governance.

Specifying the cause of this situation, the Deputy Prime Minister said that there are very large enterprises, when conducting equitization, divesting or selling capital, they have very little, and so they must calculate the upcoming trend, and the ability to operate effectively. As a result, the industry supports the main activities or supports the macroeconomic management to decide the appropriate category.

In addition, the most difficult thing in equitization, according to the Deputy Prime Minister, is the plan to arrange land and determine the value of enterprises.

Therefore, the Government has also focused attention and direction, based on the legal provisions, to fully and specifically re-evaluate. On that basis, there are solutions, plans and plans to arrange, on the order and procedures to improve the operational efficiency of state-owned enterprises, develop capital sources, and contribute to socio-economic promotion and development.